As we begin the week it is important to keep in mind that from a Weekly perspective price is still contained within a 6 week Balance. Support at the lower end of this balance has been considerably weakened given the market's multiple attempts to break thru this level. If there is a downside breakout the first destination becomes the 1409-1410 area which is the top of the lower 5 week balance.
The Daily bar above shows overlapping trading ranges - signs of an aging trend. I have highlighted the 1409-1410 area because if we find acceptance below that level - we may be looking at the 1400 level and then the 1385-87 area. Lets look at the profiles -
Friday delivered a liquidation day. The profile was pretty stretched out - with 3 distributions. My focus for Monday is monitoring where Value develops in relation to the lower Dist 3 as well as the 1416.5 level. That represents the overnight low from Oct 15 that was never tested. Acceptance below that level targets the 1409-10 area. On the upside - we have resistance at 1436.50 level.
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